MANAK CHAND DAGA,KOLKATA vs. I.T.O.,WARD-35(4), KOLKATA

The assessee in the present case is an individual, who filed his return of income for the year under consideration on 26.09.2010 declaring total income of Rs.6,02,990/-. In the assessment completed under section 143(3) vide an order dated 15.03.2013, the total income of Assessment Year: 2010-2011 Manak Chand Daga the assessee was determined by the Assessing Officer at Rs.15,76,300/- after making, inter alia, the following three additions:- (i) Disallowance under section Rs.5,41,713/- 40A(3) of the Act (ii) Bogus payment of Rs. 2,450/- commission (iii) Unexplained cash credit Rs.2.15.000/- under section 68

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) challenging the aforesaid three additions made by the Assessing Officer to his total income. During the course of appellate proceedings before the ld. CIT(Appeals), a written submission was filed by the assessee along with the relevant documentary evidence. The same was forwarded by the ld. CIT(Appeals) to the Assessing Officer for verification and comments. In the remand report submitted to the ld. CIT(Appeals), the Assessing Officer offered his comments and after taking into consideration the same as well as the material available on record, the ld. CIT(Appeals) proceeded to confirm all the three additions made by the Assessing Officer to the total income of the assessee and dismissed the appeal of the assessee. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

I have heard the arguments of both the sides and also perused the relevant material available on record. The ld. Counsel for the assessee has submitted that no opportunity of being heard was given by the Assessing Officer to the assessee during the course of remand proceedings and the letters stated to be issued by him to the assessee on 01.04.2019 were never received by the assessee. He has also submitted that even the ld. CIT(Appeals) did not give any specific opportunity to the assessee to rebut the observations/findings of the Assessing Officer in the remand report by filing a rejoinder, inasmuch as, the notice of hearing stated to be fixed by him on 27.11.2019 was never received by the assessee. He has Assessment Year: 2010-2011 Manak Chand Daga urged that this matter may, therefore, be sent back to the Assessing Officer for giving an opportunity to the assessee to put forth his case on the issues under consideration. Although the ld. D.R. has submitted in this regard that the Assessing Officer having already submitted a remand report to the ld. CIT(Appeals) giving his observations and findings on the issues under consideration, the matter may be sent back to the ld. CIT(Appeals), it is observed that the said observations/findings were recorded by the Assessing Officer in his remand report without giving proper and sufficient opportunity of being heard to the assessee and interest of justice will be served if the matter is sent back to the Assessing Officer for proper examination/verification after giving the assessee proper and sufficient opportunity of being heard. I accordingly set aside the impugned order passed by the ld. CIT(Appeals) and restore the matter to the file of the Assessing Officer for deciding the same afresh after proper examination/verification and after giving the assessee proper and sufficient opportunity of being heard. As undertaken by the ld. Counsel for the assessee, the assessee shall make due compliance before the Assessing Officer and shall extend all the possible cooperation in order to enable the Assessing Officer to make the assessment afresh expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on July 07, 2020.